Canada Child Tax Benefit (CCTB)

Eligible families can benefit from the Canada Child Tax Benefit (CCTB) to help with the costs of raising children under the age of 18. With the costs of raising a family increasing annually in Canada, it may be beneficial to look into this program. You can be eligible from the month after you child is born to the month your child turns 18 years of age. What is the CCCTB and are you eligible?

The CCTB is a non-taxable monthly payment offered to eligible Canadian families by the Canadian government. The CCTB may also include the National Child Benefit Supplement (NCBS) and the Child Disability Benefit (CDB). The amount of your monthly payment is determined based on your family net income as well as the number of children you are legally responsible for under the age of 18. Your net income is determined by the net income of you and your partner as stated on your last tax return.  In order to qualify:

• Your child(ren) must be under the age of 18 and living with you.
• You are the primary caregiver to the child(ren). According to the Canada Revenue Agency (CRA), this is defined as being “responsible for such things as supervising the child’s daily activities and needs, making sure the child's medical needs are met, and arranging for child care when necessary. If there is a female parent who lives with the child, we usually consider her to be this person. However, it could be the father, a grandparent, or a guardian.
• You must be a resident of Canada.
• You or your spouse are Canadian citizens, permanent residents, protected persons, or temporary residents who have lived in Canada for the last 18 months.

In order to benefit from the CCTB, it is important to apply as soon as your child is born, begins living with you or you become a resident of Canada. Even if you feel your income may be too high to qualify for this benefit, it is still important to apply. Your entitlement is only calculated once a year, in July, based on your family net income from the previous year. Failing to apply when you could qualify would mean waiting another full year before you can apply again. The CRA can only issue retroactive payments up to 11 months.

Applying for the CCTB is simple. Visit the Canada Revenue Agency (CRA) website to obtain the RC66 Canada Child Benefits application form and a list of tax service offices and tax centres in your area or to apply online. Once you have applied for the CCTB, you will hear from a representative of the CRA within 80 calendar days. You will then receive a Canada Child Tax Benefit Notice that will outline the amount you are entitled to each month and additional information to help you understand how your payments were calculated.

Payment dates will be determined by when you submitted your application and when your child(ren) was born or started living with you. To help you understand how much you may qualify for, please review the table below:

Canada Child Benefit Guideline Table effective July 2009 – June 2010 (2008 tax year)

(*table obtained from the Canada Revenue Agency website)

Notes:

1. Slight variances exist for the basic benefit amount for residents of Alberta .
2. These amounts are for the Federal CCTB program (basic benefit plus National Child Benefit Supplement) exclusive of any amount to which a recipient may be eligible under any existing provincial or territorial benefit or credit program.
3. These amounts are only to be used as a guideline. All recipients must keep Canada Revenue Agency informed of any changes to their family income, marital status, number of dependent children and current address.
4. These amounts do not include the Child Disability Benefit (CDB).
5. Universal Child Care Benefit (UCCB) is not included as part of your adjusted family net income in the calculation of your CCTB.

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